S&P: Papua New Guinea stable

Standard & Poor's said it revised the outlook on the long-term sovereign credit rating on Papua New Guinea to stable from negative.

At the same time, the agency said it affirmed its B+ local and foreign currency long-term ratings and B short-term ratings. The transfer and convertibility assessment remains BB.

S&P said the outlook revision reflects its assessment that the political setting in Papua New Guinea has normalized after the July parliamentary elections.

"The elections resolved the stalemate that existed for nearly a year, in which there were competing claims for the prime minister's post between Peter O'Neill and his predecessor, Michael Somare," said S&P credit analyst Yee Farn Phua in a news release.

"In the elections, the People's National Congress Party (PNCP) secured the largest number of votes, enabling Mr. O'Neill to form a cabinet. Mr. Somare's decision to participate in a coalition with the PNCP should boost political stability," Phua said.

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